Tecogen Inc. (PNK:TGEN) Q3 2023 Earnings Call Transcript

Abinand Rangesh: That’s exactly right. And in fact, the service margin decline, the increase in expense is actually a double-hit to the company. Because the way the co-generation services are built, it’s actually done on a run hour basis. So for every hour of the cogeneration system runs the customer pays a maintenance fee. So if the machine is down for service, for any extended period or some of these bigger engine replacements that are pending, then they actually reduced the run hours. So not only are you seeing a decline in revenue, you’re also seeing an increase in costs, so you’re getting squeezed on both ends here. The $3.8 million that we did in service this quarter would have been in excess of $4 million if everything, had the engines, they were all we had the ability to replace everything in one trust.

The other pieces, of course, the margin would have increased as well. So we’d have seen a significant increase in — we would have actually seen a profit this quarter alone if the service had been where it was. And then on top of that, right, as I mentioned, the billable side of things, there’s a lot of money to be had on that side of the business as well. So the service improvements alone would make a significant difference to getting Tecogen profitable.

Alex Blanton: Okay. Thank you. I don’t really have any more questions right now, but can we talk offline right after the call?

Abinand Rangesh: Sure, yes. Feel free to give me a call on my cell.

Alex Blanton: Okay, yes I will do that. Thank you.

Operator: Thank you. At this time, there are no additional questions. I will turn the floor back to management for any further remarks.

Abinand Rangesh: Thank you very much for attending the conference call and continuing to be supportive of Tecogen. I look forward to sharing more results with everybody as we continue to make progress. Thank you.

Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time. Thank you for your participation.